Our Family solicitors regularly advise our clients with regards to postnuptial agreements. Some clients may be creating a new agreement, whilst others may be updating an old postnuptial agreement or following a foreign marriage contract.
Whilst many may have heard of a “Prenup” – more formally known as a Pre-nuptial agreement – Postnuptial agreements tend to be less spoken about. Whilst a Prenup is an agreement a couple enters into before marriage or civil partnership, a postnuptial agreement is one that takes place after the ceremony (i.e. during the marriage or civil partnership). Both agreements are a record of the decisions the couple have made for their assets and finances should the couple divorce or separate.
Many choose to have a postnuptial agreement when they wish to protect their assets before relocating to the UK. This can provide a sense of surety should an international marriage break down. Such agreements can also provide a sense of peace where the financial consequences of a possible divorce have been settled ahead of any circumstances.
Deciding that you wish to create a postnuptial agreement can be a sensitive time and can bring any insecurities to the fore. Our family team understand this and will handle the process with sensitivity and empathy.
All postnuptial agreements are as different as the couples they represent. Whilst some couples may know exactly the key terms they wish to be included, others may need more advice and help in creating the right agreement for them and their relationship. We are here to help assist you. It is your decision whether you want our team to handle all the negotiations, or only to finalise them.
Our Services for Postnuptial Agreements:
This is not an exhaustive list. The below are the most common ways we can help with post nuptial agreements.
- Negotiating with partner’s lawyers, either in-person, by telephone or in writing.
- Advice on direct negotiations.
- Advice in drafting the agreement and ensuring all the terms are clear and comprehensive.
.For any advice postnuptial agreements , call our solicitors on 0333 240 7373 or via email on info@reeds.co.uk.
Reasons for a Post-nuptial Agreement
The purpose of a post-nuptial agreement will be different depending upon the couple entering into it. However, some common reasons of using a postnuptial agreement include:
1.To protect assets acquired before (or during, e.g. inheritance) marriage.
2. To protect your assets from a partner’s debts.
3. To protect your children’s financial interests.
4. To protect the financial interests of children from previous relationships.
5. To agree how you will manage finances together.
6. To protect business or trust assets.
7. To provide peace of mind around the division of assets should the relationship break down.
What Can Be Included in a Post-Nuptial Agreement?
- Maintenance – child and spouse
- Inheritance
- Capital provision
- Income provision
- Accommodation etc.
Information for Spouses Wanting a Post Nuptial Agreement
Both you and your spouse will need independent legal advice before entering into a postnuptial agreement. It is essential that each party does not feel coerced into such agreements and understand the full extend of financial requirements waived if they sign a postnup. This includes understanding the effects of hidden wealth on the agreement.
Both you and your spouse will be required to provide financial disclosure before we can finalise a postnup. If you want to take this time as an opportunity to discuss taxation or drafting a new will to reflect the post-nuptial agreement, your solicitor will be happy to assist you.
The Courts seek to uphold pre-nup/post-nup contracts that are not tainted by initiating factors or unfairness, i.e.:
- Absence of fraud
- Duress
- Misrepresentation
- Undue pressure (falling short of duress)
- Exploitation of dominant position
Why Choose Reeds Family for a Pre nuptial or Post nuptial Agreement?
Our clients choose Reeds Family Law to advise them on post nuptial agreements because:
- Our Expertise – As a multidisciplinary firm, we are sure to have the expertise in our team without having to outsource work to another firm.
- Our Experts – We have some of the best solicitors providing these services in the UK.
- Our Approach – With empathy and understanding for every client and the position they find themselves in, Reeds exists to help our clients achieve their desired outcome.
- Our Reputation – Reeds is known nationally for our astute and passionate work for our clients.
- Efficient and Cost Effective – We are upfront and honest with our costs. We would not recommend something that we do not think will benefit you.
Get in touch with our team today on 0333 240 7373 or via email on info@reeds.co.uk. Alternatively, see our contact page for help and advice with post nuptial agreements.
Frequently Asked Questions on Postnuptial Agreements
What Is a Postnuptial Agreement?
A postnuptial agreement (sometimes called a ‘postnup’) is an agreement made by a couple after they enter into marriage or civil partnership. The legal agreement outlines the ownership of financial assets in the event of a separation or divorce.
What Is the Difference Between a Prenuptial Agreement and a Postnuptial Agreement?
Prenuptial and postnuptial agreements are contracts that are drawn up either before (prenup) or after (postnup) a couple gets married or enters into a civil union. Both agreements concern the ownership of financial assets in the event that the marriage should fail.
A prenuptial agreement is a contract entered into before marriage or civil partnership, whilst a postnuptial agreement is a contract entered into during marriage or partnership.
Why Would Someone Enter Into a Postnuptial Agreement?
Postnuptial agreements are usually used for the same reasons as a prenuptial agreement. They protect wealth and assets of the people concerned.
The popular view of such agreements is that they ensure that someone doesn’t marry a wealthy person for their money. However, they are helpful in many other situations where wealth might not be the main concern. The aim of these types of agreements is to create a sense of certainty to what life will be like should a marriage or civil partnership breakdown.
The emotionally difficult time of a divorce or separation can make settlements during a divorce difficult. As such, agreements such as these ease any fears or worries the couple may have.
Other reasons to wanting a postnuptial agreement may include:
- Recording the wishes of a couple in the event of a divorce to the assets already owned
- Receiving an inheritance during the marriage
- Another change in financial and asset circumstances during marriage.
- The birth of a child.
- Having children from a previous marriage (and thus ensuring their inheritance)
- The start of a new company or business venture.
Do You Need a Postnuptial Agreement if You Have a Prenuptial Agreement?
If there is concern around the strength of a prenup (such as it being signed just before a wedding), then it might be wise to sign a postnup to reaffirm and strengthen the prenuptial agreement.
There may also be situations where the circumstances relied on by the prenuptial agreement have changed. This could include a change of personal circumstances (e.g. career or children), or new assets in the marriage such as an inheritance. In such circumstances it might be wise to revisit the terms of the prenup and consider any changes.
We have seen clients who have experienced difficulties in their marriage who wish to use a postnuptial agreement to create a sense of peace around financial decisions should further issues arise.
Are Post-nuptial Agreements Legally Binding in the UK?
Like prenuptial agreements, post-nuptial agreements are not automatically legally binding in the UK. The court is able to apply discretion where they believe it is necessary (for example, in ensuring that the welfare of any children is taken into account during a divorce).
That said, just because courts are not bound to the letter of prenuptial and postnuptial agreements, such contracts when present can still provide the basis of financial asset division during a divorce.
The courts are advised to enforce an agreement that they believe has been “freely reached” (without coercion) by the couple with full understanding of its impact. This should be enforced unless it would be unfair to ask that the couple adhere to the agreement they previously made.
Is a Postnuptial Agreement Better Than a Prenup?
Both postnuptial and prenuptial agreements work equally well at protecting the property and assets of individuals in marriage/civil partnership.
Occasionally it is ascertained that a prenuptial agreement may be seen as stronger, as the couple can be deemed as independently living adults whilst making the contract. It also can be said that postnuptial agreements are more difficult to make, as the couple’s assets become more intertwined (and thus difficult to separate) during the course of marriage or civil partnership. Postnuptial agreements have the benefit of taking into account new circumstances that occur during the marriage (new careers, children, inheritances etc), which may appear to the court as more relevant to the couple’s situation at the point of divorce.
That said, both agreements are equally valid as long as certain steps are taken to ensure that they are taken into account by the court.
How Long After Marriage Can You Get a Postnuptial Agreement?
You can make a postnuptial agreement anytime during a marriage or civil partnership. If you do not have a prenuptial agreement, then you may wish to make a postnuptial agreement with your spouse soon after entering into marriage.
Frequently we see couples approaching us to make a postnuptial agreement after a change in circumstances. That may be a career change, a new business venture, the birth of a child or an inheritance.
What Can be Included in a Post-Nuptial Agreement?
A postnuptial agreement is a bespoke contract drawn up for you and your spouse, so it can cover almost anything you wish it to. Typical inclusions in a post-nuptial agreement include:
- How the couple will divide property and other financial assets in the event of their marriage ending.
- Spousal support and for how long such support payments may continue post separation.
- How any debts will be divided in the event of a divorce (including mortgages, credit card debt and other loans)
- Provisions for children from previous relationships
- Any other aspect of finances
Do Post Nuptial Agreements Hold Up in Court?
The court has discretion on whether they uphold a prenup or post nuptial agreement. It is possible that the court may uphold part of the agreement whilst deciding another part to have an unfair effect on one or both parties. There are certain considerations that take importance over such agreements, such as the welfare of children in the marriage.
We advise that whilst post-nuptial agreements are not always binding (see FAQ question above), you should not enter into a post-nuptial agreement unless you wish to be bound by the terms of that agreement. You should fully understand the legal implications of making such an agreement, and should seek legal advice before entering into it.
Can You Do a Postnuptial Agreement Without a Lawyer?
Whilst it is possible to enter into such agreements without a solicitor, It is necessary with such agreements to demonstrate that both individuals enter into it with full (legal) understanding, and do so freely; i.e. without coercion.
It is highly recommended that both individuals entering into such agreements receive legal advice and representation. If one spouse does not receive legal advice, it could be argued that they did not understand the legal implications of signing such an agreement.
Do Post Nuptial Agreements Work?
It depends on how you intend them to work. A postnuptial agreement details how a couple wish to separate their financial assets should the marriage or civil partnership fail. In this respect, a postnuptial agreement works by providing the court with a legal document to represent those wishes through the divorce proceedings.
However, such agreements are not fully legally binding and there is no requirement on the court to divide financial assets exactly as outlined in a postnuptial agreement. Although without such an agreement in place, more emphasis on negotiation and decision is placed on the divorce process.
How Much Is a Post Nuptial Agreement?
The cost of a post nuptial agreement varies depending on the complexity of the agreement and how involved you require a solicitor to be. They are a bespoke contract between the parties which could range in cost between £1,000 and £10,000. The longer and more involved the process, and the more time required from your solicitor, the higher the cost will be.
What Happens if We Have Children After an Agreement?
If there is a chance that you and your partner have a child or children after the agreement, it is best to put a provision in the agreement in the case of these circumstances.
For any advice on separation agreements, call Reeds Solicitors on 0333 240 7373 or via email on info@reeds.co.uk. Alternatively, see our contact page here.
